(2) A public officer to whom cash advance is made under subsection (1), shall account for the advance within a reasonable period. (3) A public officer to whom cash advance has been made under subsection (1), shall return the balance of the cash advanced together with signed supporting documents for the expenditure incurred in accordance with any requirement set out in any of the following— (a) the documents used to apply for or authorise the advance; (b) regulations prescribed for the purpose of this section; and (c) any written notice given to the officer by the accounting officer.

(4) If a public officer to whom cash advance is made under subsection (1) fails to account for the advance, or fails to return it as required by subsection (3)— (a) the amount of the advance not accounted for or not returned becomes a debt owed by the officer; (b) the debt becomes subject to the payment of interest at a rate prescribed by regulations for the purpose of this subsection; and (c) the debt, including the interest on it, is recoverable by that entity by making a deduction from any salary or other amount that is payable to the officer. Accounting officer to manage assets and liabilities of national government entities. 72.(1) The accounting officer for a national government entity shall— (a) be responsible for the management of the entity’s assets and liabilities; and The Public Finance Management Act, 2012 89 (b) manage those assets in a way which ensures that the national government entity achieves value for money in acquiring, using and disposing of those assets.

(2) The accounting officer for a national government entity may dispose of assets only in accordance with an Act of Parliament pursuant to Article 227 of the Constitution and shall ensure that the proceeds from all asset disposals are deposited into a bank account of the entity. (3) A national government entity shall not loan or transfer assets to any person or organisation or permit any person or organisation to use assets for purposes other than carrying out the functions of the entity, except in accordance with an Act of Parliament enacted pursuant to Article 227 of the Constitution.

(4) Regulations may provide for the management and disposal of Government assets and for the monitoring of the management and disposal of those assets by national government entities in accordance with an Act of Parliament enacted pursuant to Article 227 of the Constitution. National government entity to maintain internal auditing arrangements. 73. (1) Every national government entity shall ensure that it complies with this Act and— (a) has appropriate arrangements in place for conducting internal audit according to the guidelines of the Accounting Standards Board; and (b) where any regulations are in force under subsection (2), those regulations are complied with.

(2) Regulations may prescribe requirements to be complied with in conducting internal audits. (3) The Internal Auditor-General Department of the National Treasury shall ensure that its arrangements for conducting internal auditing include— (a) reviewing the governance mechanisms of the entity and mechanisms for transparency and accountability with regard to the finances and assets of the entity; (b) conducting risk-based, value-for-money and The Public Finance Management Act, 2012 90 systems audits aimed at strengthening internal control mechanisms that could have an impact on achievement of the strategic objectives of the entity; (c) verifying the existence of assets administered by the entity and ensuring that there are proper safeguards for their protection; (d) providing assurance that appropriate institutional policies and procedures and good business practices are followed by the entity; and (e) evaluating the adequacy and reliability of information available to management for making decisions with regard to the entity and its operations.

(4) A national government entity shall ensure that internal audits in respect of the entity are conducted in accordance with international best practices. (5) Every national government public entity shall establish an audit committee whose composition and functions shall be as prescribed by the regulations. Disciplinary measures against public and accounting officers. No. 4 of 2003. 74. (1) Subject to the Constitution, the Public Officers Ethics Act, 2003 and the Public Service codes of ethics or any other relevant laws, if an accounting officer reasonably believes that a public officer employed by a national government entity is engaging in, or has engaged in improper conduct within the meaning of subsection (4) in relation to the resources of the entity, the accounting officer shall— (a) take appropriate measures to discipline the public officer in accordance with regulations; or (b) refer the matter to the relevant office or body in terms of the statutory and other conditions of appointment or employment applicable to that public officer.

(2) If a Cabinet Secretary reasonably believes that an accounting officer is engaging in or has engaged in improper conduct within the meaning of subsection (4), the Cabinet Secretary shall— (a) take such measures as may be provided in regulations; or (b) refer the matter to the relevant office or body in terms of the statutory and other conditions of appointment or employment applicable to that The Public Finance Management Act, 2012 91 accounting officer. (3) The measures referred to in subsection (2) (a) include revoking the position as accounting officer.

(4) For the purposes of this section, a public officer or accounting officer engages in improper conduct in relation to a national government entity if the officer— (a) contravenes or fails to comply with this Act, including their accounting responsibilities; (b) undermines any financial management procedures or controls that apply to the entity; (c) makes or permits expenditure that is unlawful or has not been authorised by the entity; or (d) fails, without reasonable excuse, to pay eligible and approved bills promptly in circumstances where funds are provided for.

(5) Disciplinary measures under this section may not be taken against a public officer or accounting officer under subsection (1) (a) or (2) (a) unless the officer has been given an opportunity to be heard in relation to the alleged improper conduct. Receivers and collectors of national government revenue Designation of receivers and collectors of national government. 75.(1) The Cabinet Secretary shall, in writing, designate persons as receivers of national government revenue under Article 209 (1), (2) and (4) of the Constitution and who shall be responsible for receiving and accounting for such national government revenue provided in any law or in regulations as the Cabinet Secretary may specify in the letter of appointment.

(2) A receiver of national government revenue is responsible to the Cabinet Secretary for the collection of revenue for which he or she is responsible and such revenue shall be separately accounted for in accordance with Articles 206 (1) and 209 (1), (2) and(4) of the Constitution. Receiver may authorise a public officer to be collector of national government revenue. 76. (1) A receiver of the national government revenue may authorise a public officer employed by the national government or any of its entities to be a collector of revenue for the national government and remit it to the receiver.